Published
May 3, 2019
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Godrej Consumer Products sees net profit rise on strong hair colour, soap sales

Published
May 3, 2019

The fast moving consumer goods brand Godrej Consumer Products reported a one percent increase in net profit -- without exceptions and one off items -- in India for the fourth quarter of the 2019 financial year.

Godrej is hopeful for the future with its fourth quarter results - Godrej Professional


For the three months ending March 31, Godrej Consumer Products reported a 207% increase in net profit in the final quarter on the previous financial year. However, this increase was largely due to higher tax credit and, without the effect of the change in taxes, net profit rose by around one percent. For the fourth quarter, the company said total sales were “flat” at Rs 1,325 crore ($199.2 million).

The business’ adjusted India earnings before interest, tax, depreciation, and amortisation increased by two percent to Rs 391 crore. Net profit without exceptions and one off items was at Rs 297 crore. Godrej’s soaps category sustained high sales growth of nine percent on a two year compound annual growth rate basis and the business reported that it is continuing to gain a market share in the sector. Hair colours also experienced seven percent sales growth with an increasing market share and the business mentioned that Godrej Nupur Herbal Based Powder hair colour is selling well. 

"We delivered a relatively weak performance in the fourth quarter of fiscal year 2019,” commented Nisaba Godrej, the business’ executive chairperson, according to the business’ press release. “Our India business remained soft on account of a general slowdown in staples consumption and the adverse impact of the delayed summer on our portfolio. In our international businesses, Indonesia continued its strong profitable growth momentum. Africa had a soft performance, led by the temporary slowdown in Nigeria due to elections and a gradual recovery in South Africa. Latin America's performance continued to be impacted by an adverse macroeconomic environment and a hyperinflationary environment.”

“During the quarter, we continued our innovation momentum in India,” said Godrej. “For fiscal year 2020, we are planning for robust sales growth in India on the back of a continued focus on innovations and enhancements to our go-to-market model. We hope to continue driving profitable sales growth in Indonesia, while focusing on profitable sales growth in Africa, and ensuring a meaningful turnaround in our Latin American business."

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